Burney, Rayliant and Clough Capital Partners formed a joint venture to create Powered by ETFs, which incorporates U.S. and international equities and alternative investments.

A Fresh Take on Investing: Three Asset Managers Team Up to Offer Custom ETF Models

Investing isn’t just about putting money into the market anymore; it’s about crafting a strategy that genuinely reflects your goals, values, and vision for the future. That’s why three major asset managers recently announced a partnership to bring custom ETF (exchange-traded fund) models to the market. With their combined expertise, these companies are introducing a fresh, personalized approach to ETF investing—one that makes it easier for people to align their portfolios with what truly matters to them.

In this blog, we’ll explore what makes these custom ETF models unique, why personalization is becoming such a big deal in investing, and how this partnership could mean new opportunities for investors who want more than the typical “one-size-fits-all” approach.

What’s So Special About Custom ETFs?

When you hear “custom ETFs,” think of them as a blend of the best parts of ETFs (low fees, tax efficiency, and ease of trading) with a level of personalization typically reserved for large, actively managed funds. Here’s a breakdown of how they work:

• Tailored Themes and Sectors: Instead of only following standard market indexes, these custom ETFs can focus on specific areas like technology, renewable energy, or emerging markets. If you have a particular industry or trend you believe in, custom ETFs allow you to get more concentrated exposure to it.
• Personalized Risk Levels: With custom ETFs, you’re not boxed into a fixed risk level. Whether conservative, aggressive, or somewhere in between, these models allow for adjustments that reflect your comfort with risk. It’s a win-win for those who want something unique but don’t want to actively manage it day-to-day.
• Values-Based Investing: More and more people want their investments to align with their values, especially regarding environmental, social, and governance (ESG) principles. Custom ETFs make it possible to invest in companies that prioritize sustainability or ethical practices, allowing you to back causes that are meaningful to you while still working toward your financial goals.

Why Personalization is Gaining Traction in the Investment World

In today’s world, one-size-fits-all just doesn’t cut it. We customize everything—our playlists, our workouts, our coffee orders—so why not our investments? Traditional funds have always been focused on capturing broad market movements, but now, many investors want more say in where their money is going.

With custom ETFs, it’s about having options that go beyond simply tracking a standard index. Maybe you’re passionate about tech innovation, or perhaps you care deeply about sustainable agriculture. Whatever your priorities, custom ETF models allow you to put your money where your passions are. With three major players coming together, investors can expect an even greater range of choices to explore, whether they want to focus on emerging trends or balance out their portfolios with specific strategies.

How Custom ETFs Offer More Than Just Flexibility

Let’s break down why these custom ETF models are exciting:

1. Low Costs Meet Personalization: Traditional personalized funds usually come with high management fees, but custom ETFs offer the same low costs ETFs are known for, combined with that added level of personalization. This is great news for anyone who wants to keep costs down while still having a portfolio that feels unique.
2. Better Tax Efficiency: ETFs are generally known for their tax efficiency, and these custom models are no exception. Unlike mutual funds, which may generate capital gains (and trigger taxes) when managers trade within the fund, ETFs often use “in-kind” transfers that help defer taxes. This keeps more money working for you in the long run.
3. Targeted Diversification: Custom ETFs offer flexibility when it comes to diversification, too. You don’t have to commit to a broad market index if you don’t want to. Instead, you can diversify based on the themes or sectors that you believe have the most potential. Whether it’s renewable energy, AI, or global infrastructure, you can build a portfolio that reflects your outlook on the future.
4. Real-Time Adjustments: Markets change constantly, and custom ETFs allow for dynamic rebalancing that keeps portfolios aligned with an investor’s goals as things shift. If a particular sector becomes riskier or gains momentum, your custom ETF can adapt without needing daily involvement from you.

How This Partnership is Changing the ETF Game

When three respected asset managers team up, it’s a big deal because it means pooled expertise, shared insights, and access to a wider range of strategies. This partnership is about bringing high-quality, customizable ETF models to more people, not just large institutions or ultra-wealthy individuals. It’s about broadening access and giving investors more flexibility without sacrificing performance.

By combining their resources and experience, these asset managers are building custom ETF models that reflect diverse investment perspectives. It’s not just about tracking trends—it’s about creating options that cater to various investor needs, from long-term growth to balanced strategies that help protect against volatility.

Is a Custom ETF Right for You?

Custom ETFs are opening up a new world of possibilities, but they’re not necessarily for everyone. Here’s a quick rundown of who might benefit most:

• Investors Who Want a Say: If you’re interested in tailoring your portfolio but don’t want to actively manage it, custom ETFs offer that blend of control and ease.
• Cost-Conscious Investors: Many investors shy away from actively managed funds due to high fees. Custom ETFs keep costs low while allowing for greater personalization.
• Values-Driven Investors: If you care about ESG and want your portfolio to reflect those values, custom ETFs can incorporate companies that align with ethical, sustainable, or social causes.
• Those Looking to Capture Trends: Custom ETFs make it easier to tap into emerging themes or trends like AI, clean energy, and biotechnology.

The Future of Investing is Personalized

This new partnership is a clear signal that asset managers are listening to investors who want more than just a passive role in their financial future. By offering custom ETF models, they’re creating opportunities to invest in what matters to us personally, in ways that weren’t as accessible before.

With custom ETFs, you’re not just along for the ride—you’re choosing a direction, one that aligns with your values, your risk tolerance, and your unique outlook on the future. As this trend continues to grow, we’re likely to see more innovations that bring even greater personalization to the investing experience.

If you’re looking for a way to make your investments reflect your unique vision, custom ETFs could be the next step toward a more tailored, purposeful investment strategy. In the ever-evolving world of finance, this partnership is an exciting reminder that the future of investing is about putting your money where your values, interests, and ambitions are.